KBRA Affirms All Ratings for GSMS 2015-GC28
25 Aug 2026 | New York
KBRA affirms all outstanding ratings for GSMS 2015-GC28. The transaction has been reduced to four loans and a balance of $72.6 million from 74 loans and $913.5 million at securitization. All of the remaining assets have been identified as KBRA Loans of Concern (K-LOCs). All four assets are considered non-recoverable and interest shortfalls currently affect the entire capital stack. The affirmations are based on KBRA’s expected resolutions of the remaining loans; KBRA's estimated losses total $37.6 million, which, if realized, would impact Class E and below. The estimated losses have increased since KBRA’s last ratings change in August 2025; however, the magnitude of the change does not warrant ratings adjustments at this time.
As of the August 2026 remittance period, three (75.1%) of the remaining assets are REO and one (24.9%) asset is in foreclosure.
The Avenue at Lubbock ($35.8 million, 49.2%, K-LOC, REO)
- The collateral consists of a 788-bed (263 unit), Class-A student housing complex located in Lubbock, Texas, approximately two miles west of Texas Tech University (TTU). The property consists of 19 three-story buildings.
- The asset transferred to the special servicer in December 2024 due to maturity default and became REO in October 2025. The special servicer is stabilizing the asset's occupancy and anticipates disposition by December 2028. As of the August 2026 remittance period, the loan has $2.5 million in cumulative non-recoverable interest.
- The servicer reported an occupancy and DSC of 73.0% and 0.89x for the YTD period ended June 2025. An appraisal dated June 2026 valued the property at $29.4 million ($37,310 per bed), representing a 43.8% decrease from closing ($52.3 million; $66,371 per bed). The asset carries a cumulative ARA of $11.5 million. KBRA’s analysis resulted in an estimated loss of $18.8 million (52.7% estimated loss severity). The loss is based on projected total exposure of $38.9 million and KBRA's liquidation value of $20.1 million ($25,460 per bed), which is derived from a direct capitalization approach using a KNCF of $1.8 million and a capitalization rate of 9.00%.
411 Seventh Avenue ($18.1 million, 24.9%, K-LOC, Foreclosure)
- The collateral comprises a 301,771 sf, Class-B office building located in the Pittsburgh, Pennsylvania CBD. The development consists of a 16-story building that features a 14,711 sf conference center and 5,425 sf of ground-floor retail space.
- The asset transferred to special servicing in February 2025 due to maturity default. The special servicer reports that a receiver is in place and the foreclosure sale is scheduled for October 2026. As of the August 2026 remittance period, the loan has $1.3 million in cumulative non-recoverable interest. The former largest tenant, Duquesne Light Company (42.5% of total sf) has vacated prior to lease expiration in October 2029; however, the tenant is obligated to pay rent through the lease term.
- The servicer reported an occupancy and DSC of 100.0% and 0.73x for the YTD period ended June 2025. An appraisal dated June 2026 valued the property at $14.1 million ($47 per sf), representing a 56.1% decrease from closing ($32.1 million; $106 per sf). The asset carries an aggregate ARA of $5.7 million. KBRA’s analysis resulted in an estimated loss of $10.0 million (55.6% estimated loss severity). The loss is based on projected total exposure of $19.9 million and KBRA's liquidation value of $9.9 million ($33 per sf). The liquidation value is derived from a direct capitalization approach using a stabilized KNCF of $1.2 million, downtime to account for income lost during the stabilization period, and a capitalization rate of 9.25%.
Iron Horse Hotel ($15.7 million, 21.7%, K-LOC, REO)
- The collateral is a six-story, 100-key, full-service boutique hotel located in Milwaukee, Wisconsin, within the Walker’s Point neighborhood south of the CBD.
- The asset initially transferred to special servicing in April 2020 due to imminent monetary default and became REO in August 2025. A receiver is in place and has appointed a new management team to stabilize cash flow. As of the August 2026 remittance period, the loan has $1.5 million in cumulative non-recoverable interest.
- The servicer reported an occupancy and DSC of 84.0% and -0.75x for the YTD period ended June 2025. An appraisal dated January 2026 valued the property at $20.0 million ($200,000 per key), representing a 31.5% decrease from closing ($29.2 million; $292,000 per key). The asset carries an aggregate ARA of $1.5 million. KBRA’s analysis resulted in an estimated loss of $7.9 million (50.2% estimated loss severity). The loss is based on projected total exposure of $17.2 million and KBRA's liquidation value of $9.3 million ($93,000 per key). The liquidation value considers a distressed non-stabilized disposition of the asset.
The remaining asset, Denim Lofts ($3.0 million, 4.2%) is REO and has an estimated loss of $846,796 (27.8% estimated loss severity).
Details concerning the rating affirmations are as follows:
- Class D at BB (sf)
- Class E at CCC (sf)
- Class F at CC (sf)
Ratings Sensitivities
Future rating actions will be dependent upon the ongoing assessment of the timing and likelihood of ultimate payment of principal and accrued interest on the rated certificates. The assessment will consider the expected and actual losses on the remaining assets in the transaction, as well as the magnitude and extent of interest shortfalls, if any, on the certificates.
To access ratings and relevant documents, click here.